Apple wins dismissal of lawsuit

As Apple's stock options saga drags on, company wins small victory in dismissal of one shareholder lawsuit

By
Jonny Evans
| 15 Nov 07

Apple legal has managed to get one lawsuit against the company rejected.

The company yesterday won dismissal of a shareholder lawsuit which claimed company executives - including CEO Steve Jobs - were overpaid with illegally backdated options.

The case was bought to the courts by The New York City Employees' Retirement System, which argued that these options awards caused Apple's stock to be diluted.

District Judge Jeremy Fogel didn't agree, arguing that Apple's stock price had seen no discernible impact, making it hard to establish shareholders had suffered in any way.

"While the subsequent disclosure that the options were backdated might require a restatement, without a discernible drop in the stock price there is no basis upon which to establish an injury to shareholders," the judge explained.